A Zero-Coupon Bond with a $1000 Face Value Has 7

question 48

Multiple Choice

A zero-coupon bond with a $1000 face value has 7 years left until maturity.If its current price is $786,then the yield to maturity on this bond is approximately:

• A)3.5%
• B)1.27%
• C)1.03%
• D)0.035%
• E)7%

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Definitions:

Few Suppliers

A sourcing strategy where a company relies on a limited number of suppliers for its materials or components.

Technological Change

Technological change involves the invention, innovation, and diffusion of new technologies or processes, significantly impacting productivity and societal practices.

Vertical Integration

A strategy where a company expands its operations to include different stages of production and distribution within its industry.

Vertical Integration

An approach in which a business grows by extending into various stages along its production chain, including instances where a producer controls its own supply and distribution networks.